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On the afternoon of November 23, the 14th Annual Vietnam Mergers & Acquisitions (M&A) Forum 2022, organized by Investment Newspaper under the auspices of the Ministry of Planning and Investment, officially took place in Ho Chi Minh City. With the theme “Activating New Opportunities,” the forum attracted over 500 participants who discussed M&A opportunities in Vietnam in depth.

Mr. Tran Quoc Phuong, Deputy Minister of Planning and Investment, noted that the global market recorded 8,258 M&A deals valued at $544 billion, compared to 9,605 deals worth $1.05 trillion in the same quarter of 2021. Large-scale transactions have slowed down, and the global M&A market may face a downturn next year.

In that context, Vietnam’s M&A market has also entered a quieter phase compared to the activity levels of 2020 – 2021. According to KPMG data, the total M&A value in the first ten months of 2022 reached $5.7 billion, down 35% from the same period in 2021. Notably, similar to 2021, Vietnamese companies continued to lead transactions with a total value exceeding $1.3 billion. Major sectors attracting investments included consumer goods ($1.2 billion), real estate (nearly $1 billion), and industry ($800 million).

The energy sector was especially “hot” in 2022 in terms of value growth, reaching nearly $600 million, a sixfold increase compared to the whole of 2021. According to Deputy Minister Tran Quoc Phuong, continuing large-scale programs in 2022, the Ministry of Planning and Investment is also drafting amendments to the Bidding Law and the Cooperative Law, among others. These efforts aim to improve the legal framework for investment and business activities, creating a favorable, transparent environment for these activities in Vietnam, including M&A.

“With policies supporting the business community and an approach that emphasizes selective foreign investment cooperation, focusing on quality, effectiveness, technology, and environmental protection as key criteria, Vietnam is also developing mechanisms and policies to attract large-scale, high-tech projects with positive spillover effects that link with domestic businesses,” Deputy Minister Phuong said.

At the forum, the organizers honored 10 notable Investment & M&A deals of 2021-2022, including:

1. UOB Bank (Singapore) acquiring the entire retail banking business of Citigroup in Vietnam.
2. Sumitomo Mitsui Financial Group (Japan) purchasing a 49% stake in VPBank’s FE Credit.
3. A $280 million deal where The Sherpa Company (part of Masan Group) acquired 85% of Phuc Long Heritage.
4. Thaco acquiring South Korean E-Mart in Vietnam.
5. CVC Capital Partners buying a 60% stake in Phuong Chau Group (which operates Phuong Chau International Hospital in Can Tho, Sa Dec-Dong Thap, and Soc Trang).
6. Shinhan Group (South Korea) acquiring 10% of Tiki Global for $88 million, becoming a strategic shareholder of Tiki Global with indirect control in Tiki Co., Ltd.
7. The merger of DT Energy Corporation (DTE), B.Grimm Power Public Company Limited (Thailand), and Xuan Cau Group in the Dau Tieng Tay Ninh 1 Project.
8. Binh Duong Development and Trade Corporation (TDC) transferring the Uni Galaxy commercial housing project to Gamuda Land (HCMC) from Malaysia. The deal was valued at $53.8 million.
9. Novaland receiving $250 million from an investment group led by Warburg Pincus.
10. Vietnam National Chemical Group (Vinachem) divesting all its state capital in Duc Giang Chemical Group (DGC).

The company with the most prominent M&A strategy for 2021-2022 was awarded to Masan Group Corporation, which carried out over 10 investment and M&A deals during this period.